LKA Reports Substantial Fluctuations in Ore Grade During the Fourth Quarter
GIG HARBOR, Wash., Jan. 15, 2014 /PRNewswire/ -- LKA Gold Incorporated (OTCQB:LKAI) announced that the grade of vein material extracted during its exploration program varied widely in the fourth quarter of 2013. Crushed and shipped material ranged from a high of 5.13 ounces (145 grams) gold per ton to .41 ounces (11.6 grams) per ton on the low side. Not all of the material processed during the quarter was shipped and two of the shipments have not yet settled. Several tons of crushed vein material remains on site awaiting the results of these settlements/sales.
According to LKA President, Kye Abraham, "We're at a point in the mine where the grade of the gold bearing veins is fluctuating wildly. This is encouraging from an exploration perspective as we get closer to the center of this deposit but it makes it difficult to predict the number of ounces we'll ship in a given period."
For the past three years, Golden Wonder ore shipments from exploratory mining have covered the cost of LKA's exploration effort….at the project level. To get management's perspective on ore shipments and exploration objectives, interested parties are encouraged to read "Hunting for Elephants" in the recent issue of "President's Email Updates" on the Company's website at: http://lkagold.com/Management_Team_-_LKA_Inter.html
A more detailed report of fourth quarter shipments will be made once all shipment/settlement information has been received.
About LKA's exploration program at its Golden Wonder Mine
Vein material is extracted as crews follow the volcanic vent system along the wall of the Uncompahgre Caldera. This method of exploratory mining and underground drilling proved successful in locating the first commercial ore body which yielded more than 133,000 ounces of gold from a single ore chute measuring less than 10,000 square feet. From 1998, through the second quarter of 2006, the average grade of Golden Wonder ore was 16.01 ozs. (454 grams) gold per ton. LKA believes that additional such ore chutes may exist on its mining claims. Upon resuming exploratory operations in the first quarter of 2009, LKA has shipped twenty-seven bulk ore samples containing more than 4,000 ounces with a net value, after processing, of over $4.2 million. The Company is continuing to evaluate financing options to expand/accelerate this program. Investors are cautioned that the Company continues to generate substantial losses and additional funding and exploration work is required. A commercially viable ore reserve has yet to be established.
Safe Harbor Statement
LKA's plans to resume/expand Golden Wonder production are subject to a number of conditions including, but not limited to, favorable geology, successful exploration efforts, favorable financing terms/availability, permits, gold prices, market conditions, etc. Mining and related activities are inherently high-risk endeavors and there can be no assurance that LKA will be successful. This press release contains certain forward-looking statements. Statements contained in this press release that are not purely historical are considered forward-looking. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding LKA Gold's future plans for exploration and/or production, future expenses and costs, future liquidity and capital resources, and estimates of ore, ore grades and mineralized material. All forward-looking statements in this press release are based upon information available to LKA Gold on the date of this press release and the Company assumes no obligation to update any such statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's reports filed with the Securities and Exchange Commission.
Riverview Capital Enterprises
Jonathan Barkman, President
SOURCE LKA Gold Incorporated